) announced its earnings outlook for the fourth quarter of 2012,
ending December 31, 2012. The company expects lower earnings in
the quarter both on a sequential and year-over-year basis.
Nucor expects earnings in the quarter to be in the range of 25
cents to 30 cents per share. The earnings include a LIFO credit
of 6 cents per share. The current quarter's guidance is lower
than 35 cents per share earned in the third quarter of 2012 and
43 cents in the fourth quarter of 2011. The LIFO credits earned
by the company in the third quarter of 2012 and the fourth
quarter of 2011 were 16 cents and 11 cents, respectively.
The steel maker witnessed improved sheet mill margins in the
fourth quarter but steel margins lagged due to high import levels
and economic uncertainty. Nucor expects lower earnings in the
upcoming quarter mainly due to smaller LIFO credit and lower
margins in the steel business.
In October 2012, Nucor released its third quarter 2012
results. The company reported adjusted (excluding special items)
earnings of 45 cents per share in the quarter, ahead of the Zacks
Consensus Estimate of 42 cents. The adjusted earnings exclude
cost associated with Skyline Steel buyout and loss on divestiture
of the assets of Nucor Wire Products Pennsylvania, Inc.
Profit (as reported) came in at $110.3 million or 35 cents a
share, down 39% from $181.5 million or 57 cents per share
reported a year ago. The bottom line was hurt by lower operating
profits at the company's steel mills, especially in sheet and
Revenues slid 8.6% year over year to $4,801 million, missing
the Zacks Consensus Estimate of $4,856 million. An 8% fall in
average sales price weighed on Nucor's revenues in the quarter.
Total tons shipped to outside customers dipped 0.3% year over
year to 5.8 million tons in the reported quarter and total mill
shipments decreased 1.7% to 5.0 million tons.
Nucor, which competes with
Commercial Metals Co.
United States Steel Corp.
), maintains a Zacks #3 Rank, which translates into a short-term
(1 to 3 months) Hold rating. We currently have a long-term (more
than 6 months) Neutral recommendation on the shares of Nucor.
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